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When does it makes sense to invest in a perfume?
(Part 2)

Read Part 1: The Market

Finding the right scale

Think like a merchant. Small amounts of money go out; larger amounts come in. You want the money going out to be the right amount needed to pay for the merchandise (perfume) that will be sold. If too much money goes out – more than is necessary – profit is diminished. Scale is important.

Perfumes, even the best of them, do not continue to sell forever. The sales curve has a beginning and an end and the weeks from start to finish can be few. You must plan your promotion around those weeks when your fragrance is hot. Don't get pulled down by putting money into the last days of the sales curve. At that point you will be putting in more than you will be getting out. The more accurately you can estimate how many units you can sell, the less spending waste you will incur.

Look at it this way. If you are likely to sell about 5,000 bottles of your perfume but you go overboard and produce 20,000 bottles, you end up with 15,000 unsold bottles. The cost to produce those 15,000 unsold bottles is a drain on your profit. This is important.

When you look for opportunities you must consider the sales potential in any market you might care to exploit. A market that might produce 1,500 very profitable sales – if you can produce just 1,500 bottles – will not look so good if you are intent, perhaps because vendors or investors are pushing you a bit, on producing 5,000 or even 10,000 bottles. In fact, if you are fixated on a high level of production you might totally overlook "small" markets that could be highly receptive to your offer... meaning your marketing costs would be quite low and your profit high... if you produce just the right amount of inventory.

Remember, while your cost per bottle can seem low if you calculate from a large number, the cost of unsold bottles must be added to the cost of the bottles sold.

For example, if you produce 20,000 bottles at a cost of $4.75 per bottle (total cost = $95,000) but only manage to sell 7,000 bottles, your true cost per bottle becomes $13.57 (95,000 / 7,000 = 13.57). The drag from your unsold bottles will almost certainly eliminate the profit you would have made had you produced closer to 7,000 bottles.

You may hate mathematics but, if you want to sell perfume profitably, you must get comfortable with basic arithmetic.

Next: Distribution...


Memory Cross 200 Perfume and Fragrance Test Strips for Testing fragrances, Essential Oils

Sturdy 17 point cover paper which is 2X as thick as a playing cards so will hold up. This paper is specifically designed to absorb fragrances. Five inch length x 0.5 inches wide and tapered for room to write notes at the top.


HAVENLAB Deionized Water
  • COMPLETELY PURE - Although tap water has been filtered to make it safe for human consumption, it still contains trace minerals. Our sterile water has been thoroughly purified and mineral-free.
  • ENSURE TOTAL ACCURACY - When conducting lab tests, using tap water can introduce impurities that affect the chemical composition. Deionized water will get you the most accurate results.
  • A STABLE INGREDIENT - Pharmaceuticals, cosmetics, and hygiene products use distilled or deionized water. Its purity makes it a reliable choice for maintaining product safety and integrity.
  • SUITABLE FOR MACHINERY - Deionized water is also widely used in industrial applications. Cleaning, cooling, and lubricating with it as opposed to regular water helps prevent corrosion damage.
  • GREAT FOR CARS - Whether you're topping off your car's coolant system or washing off dirt and grime, this sterile 1 gallon bottled water is a smart choice. Prevent water spots on your vehicle!

Stainless Steel Funnels for Kitchen,Small Metal Funnels (1.7Inch/ 2.2Inch/ 2.9Inch) No Spilling Food Grade Kitchen Funnels for Essentail Oil, Spices, Flask, Perfume

Stainless Steel Funnels for Kitchen: These stainless steel funnels are made of food grade stainless steel, non-toxic and sturdy. Premium material makes these small funnels have a long usage time and resists breaking, bending, scratching, rusting. Each Stainless Steel funnel has a perfectly narrow stem, ideal for filling small bottles and containers while keeping the kitchen counter free from spills. Each funnel's stem is equipped with an indent (air release channel), which allows funnels to vent and allows contents to flow better. Perfect for adding salt, pepper, herbs or spices into shakers or jars; transferring oils and vinegars into cruets or small decorative bottles for gifts; adding powdered drink mixes into water bottles and much more.


Karter Scientific 214T2, 3.3 Boro, Griffin Low Form, Glass Beaker Set - 3 Sizes - 50ml, 100ml, 250ml

3.3 Borosilicate glass, Griffin low form, 3 sizes - 50ml, 100ml, 250ml, Extra large marking spot, ASTM Specification E960, Type I requirements.


SUPERLELE Glass Graduated Cylinder Set 10ml 25ml 50ml 100ml, Thick Glass Beaker Set 50ml 100ml 250ml with 2 Droppers

Package contains: glass cylinders in 4 sizes (10/25/50/100ml), glass beakers in 3 sizes (50/100/250ml), and 2 glass droppers.
Product material: cylinder and beaker are both made of high quality 3.3 borosilicate glass (GG-17), graduated, laboratory grade glassware.Thick glass, acid and alkali resistant, with good stability.
Product features: Both the graduated cylinder and the beaker have tapered gates for easy liquid pouring.The graduated cylinder has stable base, and the scale is clear and easy to read.


archander
Perfume and Flavor Materials of Natural Origin

Steffen Arctander's Perfume and Flavor Materials of Natural Origin was first published in 1960 and is the classic, authoritative reference for natural products used in perfumes, scents, flavorings, foods, and medicine throughout the world. Part One defines and describes processing methods used to extract or refine the products into usable form; Part Two includes more than 500 monographs on the natural raw materials used to produce perfumes, flavorings, etc. Appendices include a classification of important materials by their scent, and worldwide production figures for major products. Fully indexed, the book also includes 62 pages of photographs, making this the standard reference work on natural materials for perfumers and flavor chemists. The preface contains practical descriptions of available materials, their origin, production and processing methods, appearance, odor and flavor type with brief notes on their main constituents, replacements and common adulterants.


Creating Your Own Perfume With A 1700 Percent Markup! (3rd edition)

Perfume is famous for the markup it can achieve, even for a middle market fragrance. While "everybody knows" that perfume costs next to nothing to make (not completely true) the making of it is often considered an esoteric secret. "Creating Your Own Perfume With A 1700 Percent Markup!" details how a 3-person company with no experience created their own fragrance in response to a marketing opportunity that was too good to pass up. The book explains exactly what was done to create a fragrance for that opportunity but it is far more than a history of the author's project. "Creating Your Own Perfume With A 1700 Percent Markup!" lays out every step in the process of creating your own perfume, either as a do-it-yourself project – and without the benefit of automated equipment some compromises and workarounds are required – or full bore professional production under your supervision. Either way you will be producing a quality fragrance at a remarkably low cost. Do you have a marketing opportunity that would be wildly profitable if only you could obtain your fragrance at a ridiculously low cost? "Creating Your Own Perfume With A 1700 Percent Markup!" is the guide you need to do it.


Naming Your Perfume And Protecting Your Name

A really great name, a special name that is just right for a particular perfume or perfume marketer (or entrepreneur with money to invest!) can be worth a ton of money. But few individuals with great ideas ever manage to cash in on those brilliant ideas. Instead they wait while others "discover" their idea, acquire legal rights to it and make all the money while they are left out in the cold without a penny having been earned for what was once THEIR idea.

If you are struggling to name your perfume and are looking for a name that will have real value, "Naming Your Perfume And Protecting Your Name" will help you weed out low value names and point you to names that have better marketing value plus the potential to become valuable assets in themselves.

If you have a great name you want to protect but no fragrance, "Naming Your Perfume And Protecting Your Name" will guide you through the simple steps you must take to acquire a legal right to that name before someone else grabs it! Best of all, "Naming Your Perfume And Protecting Your Name" shows you how to gain strong legal protection for your name without a lawyer and without spending more than pocket change.

Never had an idea for a product name? Never thought much about perfume? "Naming Your Perfume And Protecting Your Name" may stimulate your interest in a whole new game that, when played well, can make you lots of money without your having to leave the comfort of your home office.


How To Launch Your Own Perfume Company: A Simple Business Plan

You can build a perfume business of your own using this business plan as a guide. By following its detailed strategy you learn to identify motivated groups of potential perfume buyers. Members of these groups are near the tipping point of desire for a new perfume. You don't know these people and they don't know you but you know a marketer they trust, one who does not currently sell perfume and might never think of selling perfume were it not for your approach. Here is where you step in with a professional plan, promotion, and perfume to take advantage of this ripe opportunity for mutual profit. Before your first promotion has peaked, you will already be developing a relationship with your next marketing partner. Following this plan, you will gain more and more profit with each new marketing partnership.


Creating your own perfume from dropper bottles: Methods, mechanics, and mathematics

Now when you make your own perfume you can make it fully "commercial" meaning you will be creating a product ready for regular, continuous sales to friends, relatives, and the public! If the fragrance you've made has already won praise, why not share it with others? Some might pay you for it and want it for their web stores or retail boutiques! Creating your own perfume from dropper bottles: Methods, mechanics, and mathematics guides you through steps that can turn your hobby project into a perfume business. Discover how close you are now and how little more you must do to take what you made with essential oils and dropper bottles into a business of your own! For an introduction to this book, watch this video.


How To Create A More Valuable Name For Your Perfume

When you name a perfume you create a valuable asset – the name itself. To sell your perfume you want the most effective name possible. But a good name can have value beyond the edge it gives your sales. In naming your fragrance you are creating a trademark and a trademark can have value independent of the product. The value of that trademark can vary. Much depends on how well, in naming your perfume, you follow the trademark "rules." How To Create A More Valuable Name For Your Perfume first helps you develop a name that will be effective in selling your perfume. It then prods you to make use of certain techniques that can turn a good name into a great trademark, strong and valuable. If you have questions about how to protect a name, How To Create A More Valuable Name For Your Perfume will answer many such as:

  • Can you protect your name yourself or do you need a lawyer?
  • Can you register a trademark without a lawyer?
  • What does it cost to register a trademark?
  • How do I enforce the rights I have established?

How To Create A More Valuable Name For Your Perfume covers both state, federal, and international protection.


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Philip Goutell
Lightyears, Inc.